What is Zacks Research's Estimate for ITW Q1 Earnings?

Key Points

• Zacks Research lowered Illinois Tool Works’ Q1 2028 EPS estimate to $2.99 from $3.04, while projecting $13.33 in full-year 2028 EPS.
• ITW’s latest quarterly results exceeded expectations, with EPS of $2.84 versus a $2.80 consensus and revenue of $4.30 billion, up 6.1% year over year.
• Analyst sentiment remains cautious: ITW has a consensus “Reduce” rating and a $273.42 average price target, despite raising its quarterly dividend to $1.72.

Illinois Tool Works Inc. (NYSE:ITW - Free Report) - Equities research analysts at Zacks Research lowered their Q1 2028 earnings per share estimates for shares of Illinois Tool Works in a research note issued to investors on Monday, October 12th. Zacks Research analyst Team now expects that the industrial products company will post earnings per share of $2.99 for the quarter, down from their prior estimate of $3.04. The consensus estimate for Illinois Tool Works' current full-year earnings is $11.42 per share. Zacks Research also issued estimates for Illinois Tool Works' Q2 2028 earnings at $3.31 EPS, Q3 2028 earnings at $3.52 EPS and FY2028 earnings at $13.33 EPS.

Illinois Tool Works (NYSE:ITW - Get Free Report) last released its earnings results on Tuesday, July 28th. The industrial products company reported $2.84 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.80 by $0.04. Illinois Tool Works had a net margin of 19.39% and a return on equity of 101.72%. The business had revenue of $4.30 billion for the quarter, compared to analysts' expectations of $4.19 billion. During the same period last year, the company earned $2.58 earnings per share. The company's quarterly revenue was up 6.1% on a year-over-year basis. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS.

Several other research analysts have also weighed in on ITW. UBS Group set a $277.00 target price on Illinois Tool Works in a research report on Friday. Truist Financial lowered their price target on Illinois Tool Works from $308.00 to $297.00 and set a "hold" rating for the company in a research report on Monday, October 5th. Weiss Ratings lowered Illinois Tool Works from a "buy (b)" rating to a "buy (b-)" rating in a research note on Tuesday. Wolfe Research restated an "underperform" rating and issued a $286.00 price objective on shares of Illinois Tool Works in a report on Thursday, July 9th. Finally, JPMorgan Chase & Co. downgraded Illinois Tool Works from an "overweight" rating to a "neutral" rating and cut their price objective for the stock from $350.00 to $270.00 in a report on Friday, October 9th. One research analyst has rated the stock with a Buy rating, seven have issued a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat.com, Illinois Tool Works presently has a consensus rating of "Reduce" and a consensus price target of $273.42.

Illinois Tool Works Stock Up 0.5%

Shares of NYSE ITW opened at $266.42 on Wednesday. The stock has a market capitalization of $75.88 billion, a PE ratio of 24.03, a P/E/G ratio of 2.86 and a beta of 0.96. The company has a quick ratio of 0.81, a current ratio of 1.11 and a debt-to-equity ratio of 2.26. The firm has a fifty day moving average of $275.03 and a 200-day moving average of $268.21. Illinois Tool Works has a 52-week low of $238.82 and a 52-week high of $303.15.

Hedge Funds Weigh In On Illinois Tool Works

Hedge funds and other institutional investors have recently bought and sold shares of the stock. B. Metzler seel. Sohn & Co. AG acquired a new position in Illinois Tool Works in the second quarter worth $5,017,000. Sanctuary Advisors LLC acquired a new stake in shares of Illinois Tool Works during the second quarter worth $14,028,000. Cibc World Market Inc. acquired a new stake in shares of Illinois Tool Works during the second quarter worth $3,887,000. Sapient Capital LLC lifted its position in shares of Illinois Tool Works by 227.7% in the 2nd quarter. Sapient Capital LLC now owns 13,611 shares of the industrial products company's stock worth $3,703,000 after buying an additional 9,457 shares during the last quarter. Finally, Fidelity National Financial Inc. bought a new position in shares of Illinois Tool Works in the 2nd quarter worth about $20,583,000. 79.77% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Illinois Tool Works

In other news, CAO Matteo C. Pigozzo sold 277 shares of the company's stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $289.22, for a total value of $80,113.94. Following the completion of the sale, the chief accounting officer owned 3,394 shares of the company's stock, valued at $981,612.68. This represents a 7.55% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Ernest Santi sold 41,431 shares of the stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $287.09, for a total value of $11,894,425.79. Following the completion of the sale, the director owned 266,288 shares of the company's stock, valued at approximately $76,448,621.92. This trade represents a 13.46% decrease in their position. The SEC filing for this sale provides additional information. 0.83% of the stock is currently owned by corporate insiders.

Illinois Tool Works Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, October 9th. Investors of record on Wednesday, September 30th were issued a $1.72 dividend. The ex-dividend date was Wednesday, September 30th. This represents a $6.88 annualized dividend and a yield of 2.6%. This is an increase from Illinois Tool Works's previous quarterly dividend of $1.61. Illinois Tool Works's payout ratio is currently 62.38%.

Illinois Tool Works News Summary

Here are the key news stories impacting Illinois Tool Works this week:

• Positive Sentiment: Zacks raised several 2026–2027 estimates. Zacks lifted its FY2026 EPS forecast to $11.42 from $11.40, FY2027 to $12.37 from $12.27, and made small increases to estimates for Q3 2026, Q4 2026, Q1 2027 and Q3–Q4 2027. These revisions suggest modestly improving expectations for ITW’s near-term operating performance.
• Neutral Sentiment: Corporate recognition and innovation discussion provide limited direct stock catalysts. ITW was honored at an Adler Planetarium gala that raised $1.2 million, while a separate article examined whether the company’s innovation initiatives could benefit from an industrial upturn. Neither item included a material financial announcement. Adler Planetarium Gala Pulls In $1.2M as ITW Is Honored
• Negative Sentiment: JPMorgan downgraded ITW to Neutral from Overweight and cut its price target to $277 from $350. The sharply lower target indicates reduced confidence in the stock’s upside and is the clearest negative catalyst in the recent news flow. JPMorgan Downgrades Illinois Tool Works to Neutral From Overweight, Cuts Price Target
• Negative Sentiment: Zacks reduced its 2028 earnings forecasts. Q1 2028 EPS was lowered to $2.99 from $3.04, Q2 to $3.31 from $3.44, Q3 to $3.52 from $3.56, and FY2028 to $13.33 from $13.60. The cuts point to somewhat weaker longer-term growth expectations, although FY2028 EPS remains above the current-year consensus of $11.42.

Illinois Tool Works Company Profile

Illinois Tool Works Inc NYSE: ITW is a diversified industrial manufacturer that develops and produces engineered products and systems for customers worldwide. The company serves a broad range of end markets, including automotive, construction, food service, welding, electronics, and general industry.

ITW's product portfolio includes automotive components and fasteners, commercial food equipment, welding equipment and consumables, test and measurement instruments, electronic components, polymers and fluids, construction fastening systems, and other specialized industrial products.

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